Clause 6 - Power of the CAC to extend notification period
Employment Relations Bill
2:45 pm
Mr Henry Bellingham (North West Norfolk, Conservative)
We have not tabled any amendments to the clause, which seems to be fairly straightforward. There is one point on which I would like the Minister to elaborate. The clause gives the CAC power to extend the notification period, amends paragraph 24 of schedule A1 and applies where the CAC gives notice under paragraph 22(3) or paragraph 23(2) that it intends to arrange for the holding of a secret ballot. Can the Minister give us some more details about that?
Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)
I am happy to do that and thank the hon. Gentleman for making the point. The statutory procedure was designed to encourage voluntary deals
wherever possible and to act as a fallback where the parties cannot reach agreement. That has worked well with over 700 voluntary agreements since the legislation came into force. If the CAC decides to hold a recognition ballot, there are 10 working days for the parties to inform the CAC that they do not wish the ballot to go ahead. That gives the parties time to consider whether they want to go to the expense of holding a ballot. They may choose to withdraw, often because they have been able to reach a voluntary agreement.
Unlike most time periods in the process, the 10-day period cannot currently be extended by the CAC and the parties have no means of asking the CAC to delay the ballot for even a little while longer while they try to reach agreement. Of course, the parties could still call a halt to the ballot after the end of the period, but any agreement reached after that date would not qualify as an agreement for recognition under the schedule. That would mean that the three-year moratorium on the employer terminating the agreement did not apply. The parties would not be able to seek the assistance of the CAC in determining their bargaining method or addressing their failure to adhere to the agreed bargaining method. Where both sides agree, the clause, by extending the deadline, gives them an opportunity to reach a voluntary arrangement.
Question put and agreed to.
Clause 6 ordered to stand part of the Bill.